Consider a Cournot Duopoly with the Following Inverse Demand Function

question 87

Multiple Choice

Consider a Cournot duopoly with the following inverse demand function: P = 100 - 2Q₁ - 2Q₂.The firms' marginal cost are identical and given by MC_i(Q_i) = 2Q_i.Based on this information consumer surplus in this market is

• A)$16.33.
• B)$32.67.
• C)$1,067.11.
• D)$2,134.22.